Mr Obama said he was ‘extending the hand of friendship’ during his historic visit and earlier met with president Thein Sein and opposition leader Aung San Suu Kyi .

Tens of thousands of people lined the streets of the capital Rangoon to greet the US president, who is currently embarking on a tour of Asia following his re-election two weeks ago.

Speaking to members of the press, with Mr Obama by her side, Ms Suu Kyi, who spent years under house arrest under previous regimes, said this morning: ‘We are confident that this support will continue through the difficult years that lie ahead.

‘The most difficult time in any transition is when you think that success is in sight. We have to be very careful that we’re not lured by a mirage of success.’

Previously isolated from the international community because of a repressive military rule, Burma began a transition to democracy last year and Mr Obama said the reforms being implemented by president Thein Sein had the potential to unleash ‘the incredible potential of this beautiful country’.

Mr Obama is due to visit Cambodia after Burma, having already travelled to Thailand on his current tour.